When Wallets Shrink, You Must Attract More Wallets
Cannabis consumers are spending less, increasing the need to bring new consumers into the legal market. While there are short-term tactics to offset the effects of shrinking wallets, the most profound impact will come from transitioning more consumers from the gray market to the legal market, increasing the available customer pool. When wallets shrink, retailers must attract more wallets. According to recent research from New Frontier Data, the average decline in consumer spending per transaction has decreased 7 percent nationally year over year (YoY). Economic issues like inflation and a looming recession are primary motivating factors; others include the end of the “COVID bump” that drove sales increases during the coronavirus pandemic and changing regulatory statuses as states transition from medical to recreational. New Jersey provides the perfect example of this transitional effect with the greatest decline in spending per transaction. Typically, medical consumers spend more p...